Base metal prices climb higher

Wednesday, November 19, 2014

Base metal prices traded higher. Aluminium edged higher above $2,020 and copper climbed towards 6,700. Nickel surged more than 3% to breach above 16,140, while lead, zinc and tin followed the uptrend.

Copper 3M 

LMCADS03 Comdty (LME COPPER    3 2014-11-19 16-44-43

The weekly DOE oil inventories report was fairly disappointing after showing an unexpected large build of 2.6 million barrels in crude stocks against expectations of 870,000 barrels drop. Gasoline inventories rose by 1.03 million barrels against analysts’ estimates of 509,000 barrels build, while distillate stocks fell sharply by 2.05 million barrels. Crude oil prices have been fairly volatile in today’s session with WTI front month futures heading towards $74 per barrel after hitting a today’s high at $75.06.

WTI front month futures

CLZ4 Comdty (WTI CRUDE FUTURE  D 2014-11-19 16-43-35  

On the macroeconomic front, US housing data was fairly mixed as building permits rose by 4.8% in October beating expectations of 0.9%, while housing starts fell unexpectedly by 2.8% during the same period. The USD index climbed higher trading above 87.7 against a basket of currencies. Eurozone’s construction output declined by 1.8% in October, but the euro held around 1.255 against the US dollar.   


EURUSD Curncy (EUR-USD X-RATE)   2014-11-19 16-42-25

European equity markets came under renewed pressure in today’s trading session, while the US equities remained in negative territory. The CAC, DAX, IBEX and London equity benchmark indices posted fresh losses between 0.15% and 0.8%. 

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